Economic Overview
Colombia has endured well the critical terms of exchange stun looked over the 2014-2016 period. Financial development decelerated continuously to an expected 1.4 percent by 2017, preceding reaccelerating to 2.7 percent in 2018, with the delicate landing bolstered by sound macroeconomic strategies and auxiliary changes embraced as of late.
Throughout the most recent years the nation experienced a significant change in the non-oil financial deficiency because of the decrease in oil monetary incomes of almost 3.3 percent of GDP.
Development is relied upon to reinforce at a moderate pace over the 2019-2021 period, as private utilization development keeps on quickening, and speculation spending is helped by lower powerful corporate duties.
Accommodative money related arrangement and improved certainty will likewise bolster development. Higher productivity in the oil area is required to boost interests in misuse and investigation.
Main sectors of industry
Natural assets are inexhaustible in Colombia. The nation has biggest coal saves in Latin America, and has the second biggest hydroelectric potential in the landmass, after Brazil.
Colombia additionally has critical measures of nickel, gold, silver, platinum, and emeralds, just as huge oil and petroleum gas holds. Because of the atmosphere and the geology of the nation, farming is broad and extremely differentiated.
The country’s principle harvests are espresso, bananas, cut blossoms, sugarcane, domesticated animals, rice and corn. The portion of farming in GDP has been falling reliably for more than 50 years, as both industry and administrations have extended, and it at present speaks to 6.3% of the GDP. Be that as it may, agribusiness remains a significant wellspring of work in the nation, as it utilizes 16% of the workforce.
Colombia is the most mechanically different nation of the Andean Community, with four noteworthy modern focuses: Bogota, Medellin, Cali, and Barranquilla. Industry speaks to 26.6% of the GDP and utilizes 19.2% of the workforce. Colombia’s fundamental enterprises are material, synthetic items, metallurgy, bond, cardboard compartments, plastic tars and drinks.
The administrations segment’s significance has expanded lately. It is turning into the foundation of the Colombian economy as it speaks to 55.7% of the GDP and utilizes 64.5% of the workforce. The travel industry has been especially unique in the course of recent years.
Taxes in Colombia
National companies are taxed on overall salary. Foreign non-residents are saddled on their Colombian-source salary as it were.
The present general CIT rate is 33% for FY 2019, it will diminish up to 30% in 2022 of every a dynamic way (32% for FY 2020 and 31% for FY 2021). This rate is connected upon assessable salary.
Assessable income is commonly characterized as the excess of all working and non-working income over deductible expenses and costs. The standard expenses and costs of a business are commonly adequate as deductible use for CIT purposes, if they are vital, sensible, and have been acknowledged during the applicable duty year under the gathering or money technique for bookkeeping, by and large.
The present general capital additions expense rate is 10%.
Qualifying organizations situated in Free Trade Zones (FTZs) appreciate a diminished pace of 20% (while subject to capital additions charge at 10%, where pertinent).
Local income earned by non-inhabitant substances that isn’t owing to branches and PEs will be exhausted at 33% for FY 2019, gave the non-occupant element must document an annual expense form in Colombia.
Investing in Colombia
- The Colombian economy has developed by and large by 3.8% in the previous seven years (2010-2017). In 2017, the nation’s economy developed 1.8%, more than the normal development for Latin America and the Caribbean (1.3%).During the most recent decades, Colombia has been portrayed by its political steadiness and firm regard for private possession and activity.
- Colombia situated itself as the fourth friendliest goal in Latin America to work together as per Doing Business 2018.
- Colombia has more than 16 trade agreements in force, empowering particular access to in excess of 60 nations and about 1,500 million purchasers crosswise over business sectors including the United States, the European Union, Brazil, Mexico, Chile, Peru, Costa Rica and South Korea; with new markets to be included soon, similar to Israel and Panama, with which Colombia has consented to arrangements.
- Simple access to worldwide markets on account of its special geographical area and created coordinations foundation.
- The legislature is focused on giving motivations to venture and dependability for financial specialists.
- Colombia is the nation with the most Free Trade Zones in the area which have different tax reductions.
Incentives
Colombia has a focused Free Trade Zone system which awards the accompanying advantages:
- Single 20% annual assessment rate*.
- No traditions charges (VAT and CUSTOMS DUTIES) are expected for crude materials presented from abroad.
- Exports produced using Free Trade Zones to outside nations, may apply the advantages of global exchange understandings marked by Colombia.
- Possibility of halfway handling outside the Free Trade Zone for as long as 9 months. This handling may not surpass 40% of the expense of the absolute creation of merchandise or administrations.
- Possibility of offering to the national domain the merchandise or administrations without confinements or standards, paying the pertinent custom obligations on the imported products.